or will i make MORE profit from the dividends?
All i care aout is making the most money!
2007-10-04 14:34:33 · 8 answers · asked by Anonymous in Business & Finance ➔ Investing
holding a stock is fine if you believe it will continue going up, and it's a strong company with strong earnings.
If your company pays you a 4% dividend every year, but it's stock price is falling on average 4 or 5% a year, you're breaking even (and actually losing money due to inflation). But if your stock price keeps increasing steadily, that's very good, because you're actually getting a tax-deferred capital gain, (you don't pay tax on capital gains at all till you sell). And if you hold your stock longer than a year, your capital gains taxes are quite low - 15%.
If you have a DRIP plan - dividend reinvestment plan - that's even better, because you'll build up more shares !
In short - research your company, and keep your eye on it every week to see how theyre doing. If you don't anticipate your company making any profits for a long time, i would think of selling and find another more dynamic company which pays dividends.
2007-10-04 15:35:24 · answer #1 · answered by Anonymous · 1⤊ 0⤋
You have to sell your stocks eventually. Some of your portfolio can be dedicated to stocks that pay high dividends, but most of the stocks you buy you'll probably want to sell at a certain price that you've set for that particular stock (i.e. it's intrinsic value or even a little higher than such.) In any case the answer to your question is yes, you do need to sell stocks to make money.
2007-10-04 14:39:52 · answer #2 · answered by TC 3 · 1⤊ 0⤋
You can't get a valid answer to that here. Even if you revealed which stock it is, no one can predict whether the value will go up or down over time.
You CAN make money just off the dividends without ever selling the stock. But if the stock goes down over time, you can loose money as well.
2007-10-04 15:50:50 · answer #3 · answered by Nash 6 · 1⤊ 0⤋
The legislation is there to preclude an unlawful pastime referred to as " loose driving ". Your trades have got to be settled utterly earlier than you'll be able to do extra buying and selling. that is ordinary for money owed that haven't any margin approval, customarily the smaller sized money owed. You can observe for margin approval, and if the brokerage approves, you'll be able to then alternate as much as the prohibit in their Terms & Conditions. You will have to attempt to deliver your account measurement as much as a minimum of $25,000 to have a well risk of being authorized. There may be one more legislation that you simply can not alternate greater than a specific quantity of day trades inside a four day interval - do this and you're going to be targeted a Pattern Day Trader, and there are different requisites you have got to meet to keep that designation. Ask your brokerage for extra main points, as each and every dealer could have quite one of a kind stipulations and regulations.
2016-09-05 18:10:36 · answer #4 · answered by ? 4 · 0⤊ 0⤋
You've broken investing rule #1. Understand (fully) what you're investing in & have an exit plan.
STOP ALL YOUR INVESTING.
Read some good books on investing in stocks and Mutual Funds. If you don't you're going to make some costly mistakes.
Consider yourself warned.
2007-10-04 16:27:55 · answer #5 · answered by Common Sense 7 · 2⤊ 0⤋
Yes, but if they're doing well, HOLD THEM!!! They'll increase in value.
2007-10-04 14:47:45 · answer #6 · answered by Anonymous · 1⤊ 0⤋
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2016-07-14 05:35:49 · answer #7 · answered by Kenny 3 · 0⤊ 0⤋
1) No.
2) I don't know.
2007-10-05 13:29:43 · answer #8 · answered by Anonymous · 1⤊ 2⤋